Is Musk’s Big Payday Make-or-Break for Tesla's Share Price?
The Tesla (NASDAQ: TSLA) share price has risen ahead of the company's annual shareholder meeting on Thursday, 6 November. The main topic is CEO Elon Musk’s proposed pay package, valued at up to $1 trillion.
This package is not just about Musk receiving a large sum of money, but also concerns that he might leave if the deal is rejected. Musk expressed his need for control:
[translate:“My fundamental concern … if I go ahead and build this enormous robot army, can I just be ousted at some point in the future?“]
The payout is composed entirely of a stock package, which only reaches its headline value if Musk meets challenging performance goals for Tesla. These goals aim for a Tesla market capitalization of $8.5 trillion within 10 years, more than five-and-a-half times the current $1.5 trillion value.
Several shareholders believe such a rise in share price would justify the pay package. Ark Invest CEO Cathie Wood supports the proposal, having set a $2,600 price target for Tesla by 2029—closely aligned with the market cap goal.
However, major investors like Norway’s sovereign wealth fund, holding 1.2% of Tesla, oppose the plan.
Notably, Tesla is referred to here as both a car manufacturer and a robotics developer, reflecting Musk’s vision.
Author's summary: Elon Musk’s proposed $1 trillion stock pay package depends on ambitious Tesla growth targets, dividing investor opinion on its potential impact.
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